The two parties have not been able to agree on price, the Journal reported on its website, citing unnamed sources. The paper added that a deal was still possible, although it did not look likely at the moment.

Last month sources told Reuters that Frank Quattrone's investment bank, Qatalyst Partners, was working with Isilon.

Isilon was trying to determine where it fits following Hewlett Packard's acquisition of 3Par and EMC's deal for Data Domain, a source said at that time.

EMC, Dell and Oracle were seen as possible bidders for Isilon, but Isilon was seen as expensive, the sources said at the time.

EMC declined to comment. Isilon was not immediately available for comment.

Isilon shares fell $2.09 to close at $26.07 on the Nasdaq. (Reporting by Paritosh Bansal; Editing by Steve Orlofsky)

By submitting your information, you agree that channelinsider.com may send you channelinsider offers via email, phone and text message, as well as email offers about other products and services that channelinsider believes may be of interest to you. channelinsider will process your information in accordance with the Quinstreet Privacy Policy.

By submitting your information, you agree that channelinsider.com may send you channelinsider offers via email, phone and text message, as well as email offers about other products and services that channelinsider believes may be of interest to you. channelinsider will process your information in accordance with the Quinstreet Privacy Policy.